urn:lsid:ibm.com:blogs:entries-97050e2c-bec8-4274-a3ee-4432f0a1f4bcIBM Software Community - Tags - adm The IBM Software blog promotes thoughtful discussions and perspectives on how software is changing the way we live and do business.12015-02-03T09:57:50-05:00IBM Connections - Blogsurn:lsid:ibm.com:blogs:entry-f09913f5-f179-45d5-83be-a59b15e30c1eClearing up the confusion between business rules and operational decision managementMary ForlenzaMARYF@US.IBM.COM270001BN8Cactivebcde08b8-816c-42a8-aa37-5f1ce02470a9Comment EntriesLikes2012-11-05T09:30:07-05:002012-11-06T10:50:42-05:00<div><img alt="CherylWilson" src="http://farm9.staticflickr.com/8032/8044232732_568663754e_t.jpg" style="display:block; margin: 1em 1em 0pt 0pt; float: left; position:relative;">
<p><i>Guest post by Cheryl Wilson, Marketing Manager, IBM Operational Decision Management</i></p>
<p>&nbsp;<br></p>
<p></p><p>A recent post on the IBM Good Decision! Blog discussed <a href="https://www-304.ibm.com/connections/blogs/gooddecision/entry/adm_and_odm_what_s_the_difference26?lang=en_us">the difference between analytical and operational decision management</a> – essentially, the two main capabilities within a decision management approach and practice. Each has its own specialized function and value as it relates to improving decision making. Very simply, analytical decision management (ADM) offers insight and prediction; operational decision management (ODM), offers automation and the ability to act on captured intelligence and expertise at enterprise scale.</p>
<p>&nbsp;<br></p>
<p></p><p>As it relates to ODM, there seems to be some additional confusion around the difference between business rules and operational decision management. Is there really a difference or is it just marketing?</p>
<p>&nbsp;<br></p>
<p></p><p>Yes, there is a subtle, but powerful, difference between the two.</p>
<p>&nbsp;<br></p>
<p></p><p></p><ul>
<li>First, from a technology perspective, ODM extends the capabilities of business rules, sometimes by integrating other decision-enhancing technology, like business events, but the core capability remains business rule management.</li>
<br><li>Second, and this is the more powerful difference, ODM changes the focus from just capturing and implementing rules to improving the timing and quality of operational (or repeatable) business decisions. With ODM, the focus and approach is squarely on improving decision performance, tied to key performance indicators (KPIs), by enabling the automation and management of repeatable business decisions that are subject to frequent change.</li>
</ul><p>
</p><p>&nbsp;<br></p>
<p></p><blockquote>For those not familiar with the phrase “repeatable business decisions,” I like to refer to <a href="http://jtonedm.com"> James Taylor’s</a> simple definition: <i>A repeatable decision is one that is made more than once by an organization following a well-defined, or at least definable, decision-making approach.</i></blockquote>
<p>&nbsp;<br></p>
<p></p><p><b>An ODM approach must meet 3 challenges</b></p>
<p>&nbsp;<br></p>
<p></p><p>By focusing on decision performance, any true ODM approach and implementation will help organizations address these three challenges:</p>
<p>&nbsp;<br></p>
<p></p><p></p><ul>
<li><b>Visibility:</b> The ability to understand where the key decisions are, how they are made, and what to do to maintain them</li>
<p></p><li><b>Collaboration:</b> The ability for non-technical users to easily update those decisions in quick response to changing market demands, competitive actions and regulatory requirements – using familiar, intuitive and social interfaces that require little to no training</li>
<p></p><li><b>Governance:</b> The ability to make changing those decisions a safe and secure activity</li>
</ul><p>
</p><p>&nbsp;<br></p>
<p></p><p>With ODM, gone are the days of tediously cataloging all of the business rules. An ODM approach is about identifying those candidate decisions that are tied to key business objectives and jobs – such as fraud detection, claims processing, credit and loan approval, risk management and regulatory compliance – and then focusing any automation and improvement efforts there. Taking this kind of approach makes it easier to see and realize return on investment.</p>
<p>&nbsp;<br></p>
<p></p><p>So, ODM technology is still very much grounded in business rule management, but any software calling itself operational decision management today should extend the business rules capability to enable regular business people to easily and safely make changes to their business operations.</p>
<p>&nbsp;<br></p>
<p></p><p>Learn about the new <a href="http://www.ibm.com/software/decision-management/operational-decision-management/">IBM Operational Decision Management V8</a>. This product is the next generation of JRules, the market-leading business rule management system brought to IBM through the acquisition of ILOG.®</p>
<p>&nbsp;<br></p>
<p></p><p>Watch the <a href="http://www.ibm.com/software/info/interconnect/agenda/livestream/">IBM InterConnect 2012</a> sessions replayed on Livestream for discussions on the latest technologies for better business outcomes. Hear about ODM during this hot topic at the event: "Transforming Critical Business Processes."</p>
<p> <br></p>
<p>Read past issues of the <a href="http://www.ibm.com/soa/newsletter">IBM Smart SOA &amp; BPM Newsletter</a> and <a href="https://www-148.ibm.com/bin/subscriptions/walk_small_steps.cgi?cl=ZZEN&amp;nid=10481">subscribe</a> to receive future issues.</p>
</div>
Guest post by Cheryl Wilson, Marketing Manager, IBM Operational Decision Management
&nbsp;
A recent post on the IBM Good Decision! Blog discussed the difference between analytical and operational decision management – essentially, the two main...003346urn:lsid:ibm.com:blogs:entries-97050e2c-bec8-4274-a3ee-4432f0a1f4bcIBM Software Community2015-02-03T09:57:50-05:00